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Government announces £6bn allocation for energy efficiency and home upgrades

The government has allocated £6bn for energy efficiency and home upgrades, a sum the National Energy Action charity welcomed for low-income households but called small against the scale of fuel poverty.

A newspaper on a kitchen table beside a model of grants and schemes

The government announced an allocation of £6bn of funding for energy efficiency and home upgrade funding on 18 December 20231. The announcement was reported by National Energy Action, the fuel poverty charity, which responded to it the same day1.

Adam Scorer, chief executive of National Energy Action, said the investment was welcome but limited. The charity said that while hundreds of thousands will receive support, millions will remain in fuel poverty, and that the announcement does nothing to help private renters living in cold and damp homes that are impossible to heat affordably1.

"But the scale of this announcement is small relative to the challenge at hand and will not reach some of those in greatest need."
National Energy Action1

The charity also said that continuity for local authority projects is especially important, and that those struggling to keep warm and cope with record levels of debt this winter need help now1. It said it would continue to see low-income households take severe measures to reduce their energy use and avoid impossible debt1.

The announcement did not set out which measures are eligible, which households qualify, or how the £6bn will be distributed across nations or over time. Those details have not been reported1.

Why it matters for households

For a household, the practical effect of a funding allocation depends on whether it reaches the home and what it pays for. Energy efficiency measures reduce the amount of energy a home needs to stay warm, which lowers bills and reduces exposure to price rises. That is the basis of household energy independence: a home that needs less energy is less affected by what energy costs.

The charity's response sets out the limit of this allocation. Hundreds of thousands of homes may receive support, but millions in fuel poverty will not, according to National Energy Action1. Private renters in cold and damp homes are singled out as not helped by the announcement1. For those households, the funding does not change what they can do to their home or what they pay to heat it.

The charity also points to timing. It says households coping with record levels of debt this winter need help now, not only future investment1. A funding allocation announced in December 2023 does not by itself deliver measures this winter.

What happens next

No dated next steps were set out in the announcement as reported. The charity called for continuity for local authority projects, which indicates existing council-run schemes are a route through which funding reaches homes1. Which schemes, which measures and which households the £6bn covers have not been reported1.

Households can check which benefits qualify for energy grants and how the Home Energy Grants and Schemes in the UK fit together. Landlords considering upgrades can read funding energy upgrades as a landlord, and low-income households in England can find help for low-income households in England. The department responsible for this policy is DESNZ.

Sources1 cited
  1. Energy efficiency funding response: ‘the scale of this announcement is small’ - National Energy Action (NEA), nea.org.uk